Dear Neighbor,
Heard an interesting presentation regarding technology-aided conservation during an ag committee meeting this week.
The presentation was made by Land O’Lakes, which is developing software that will be used on ag land to determine the best locations and practices for conservation. This initiative stems from the sustainability business division the company recently created with the focus on being good stewards of our resources.
In other words, the goal is to help farmers produce more efficiently to protect the environment without sacrificing yields. Advancements in tissue sampling and topography mapping are exciting and, as a farmer, I look forward to seeing how technology becomes more and more beneficial to our operations.
On the floor this week, the House passed a bill to replenish funding for a loan program that is popular among farmers working on start-ups or looking to upgrade their operations.
The bill (H.F. 14) appropriates $35 million to the Rural Finance Authority for loans to eligible farmers. This RFA funding usually is provided through capital investment bills but, with no bonding bill approved in 2016, the fund ran dry.
It is nice to see progress on this issue early in the session because it allows people more time to plan before the ground thaws. This program has been win-win, with thousands of loans having been received by farmers to make improvements and the RFA itself showing a strong record of success on the loans it facilitates.
The RFA partners with agricultural lenders to provide low-cost financing to farmers on terms and conditions not otherwise available from other credit sources. The RFA portion of the loan is carried at a reduced interest rate to improve the cash flow of eligible farmers. RFA offer loans within the beginning farmer loan and seller assisted program, agricultural improvement program, debt restructuring program, and livestock expansion programs.
The bill calls for $35 million in bond proceeds to be allocated for future RFA loans. These bonds are 100-percent user-financed, meaning the state will be paid back.
We are now waiting for the Senate to act on this bill. More information on RFA programs can be found at www.mda.state.mn.us/agfinance or by calling (651) 201-6556.
Another big topic of late in St. Paul centers on proposals regarding employment regulations and creating uniform state labor laws in Minnesota. I addressed this issue in a column I submitted to newspapers in our region this week, so either check your local paper or click here for a link to see it at my legislative site.
I will pass along more news as it develops. Until next time, your feedback always is welcome.
Sincerely,
Paul